SUMMERINTERSHIP PROJECT

FUTURE OF METALS AS

COMMODITY IN INDIA
Project Report Submitted Towards Partial Fulfillment of Master of Business Administration Degree

(Affiliated to MTU and Approved by AICTE)

2013-2014

SUBMITTED TO: Mrs. Kavita Indrapurkar

SUBMITTED BY:VARUN KUMAR RAVI 1271270097

PREFACE
The successful completion of this project was a unique experience for me because by visiting many place and interacting various person, I achieved a better knowledge about commodity metal market. The experience which I gained by doing this project was essential at this turning point of my carrier. This project is being submitted which content detailed analysis of the research under taken by me. The research provides an opportunity to the students to devote his skills knowledge and competencies required during the technical session. The research on the topic FUTURE OF METALS AS COMMODITY IN INDIA

ACKNOWLEDGEMENT
For any successful work, it owes its thanks to many Hardwork, knowledge, dedication, and positive attitude all are necessary to do any task successfully but one ingredient which is also very important than others and at a time more important than others in co-operation and guidance of experts and experienced person. I am very grateful to Prof. Kavita Indrapurkar who was my guide during the development of this project and it was her guidance and assistance which help me in completing my project and I am thankful for her support and friendly guidance. I would also like to express my heartful regards to my parents, my friends and company mentor (Mr. Ashok kumar, Area Coordinator, Reliance LEAP) & staff of Reliance Securities and others who directly or indirectly help me a lot for the successful completion of my project report. So now where my training has been completed and my heart is full of gratification, so I cannot forgot to thanks the Almighty God. His blessings help me everywhere in my life. Thanks God
(Varun Kumar Ravi)

DECLARATION
I Varun Kumar Ravi student of IIMT Group of Colleges Batch(2012-14) declare that every part of the Project Report Future of Metals As Commodity in India I have submitted is my original work I was in regular contact with the nominated faculty guide and contacted Prof. Kavita Indrapurkar several times for discussing the project.
Date of project submission:______________

(Varun Kumar Ravi)

Facultys Comments :
_______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ ___________

(Prof. Kavita Indrapurkar)

TABLE OF CONTENTS
CONTENT
INTRODUCTION COMPANY PROFILE ORGANISATION STRUCTURE VISION & MISSION OF THE ORGANIZATION OBJECTIVE OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION CONCLUSION LIMITATIONS OF STUDY RECOMMENDATION BIBLIOGRAPHY ANNEXURE 80 82 84 86 88 29 31 37

PAGE NO.
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INTRODUCTION TO COMMODITY
Any product that can be used for commerce or an article of commerce which is traded on an authorized commodity exchange is known as commodity. The article should be movable of value, something which is bought or sold and which is produced or used as the subject or barter or sale. In short commodity includes all kinds of goods. Indian Forward Contracts (Regulation) Act (FCRA), 1952 defines goods as every kind of movable property other than actionable claims, money and securities. In current situation, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for commodity trading recognized under the FCRA. The national commodity exchanges, recognized by the Central Government, permits commodities which include precious (gold and silver) and non-ferrous metals, cereals and pulses, ginned and un-ginned cotton, oilseeds, oils and oilcakes, raw jute and jute goods, sugar and gur, potatoes and onions, coffee and tea, rubber and spices etc.

COMMODITY EXCHANGE
A commodity exchange is an association or a company or any other body corporate organizing futures trading in commodities for which license has been granted by regulating authority.

COMMODITY MARKET
Commodity market refers to physical or virtual transactions of buying and selling involving raw or primary commodities. A soft commodity generally refers to commodities harvested as products like coffee, cocoa, sugar, corn, wheat, soybean, and fruit traded in the commodity market. Hard commodities usually refer to commodities that are extracted such as (gold, rubber, oil). While commodities may be grouped for regulation purposes etc., in large classes such as energy, agricultural including livestock, precious metals, industrial metals, other
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commodity markets, these are broken down into about a hundred primary commodities (soybean oil, recycled steel). Investors access about 50 major commodity markets worldwide uses growing numbers of exchanges with virtual transactions increasingly replacing physical trades.

COMMODITY METAL MARKET

Bullion Bullion traditionally stands for gold bars, silver bars, other precious metals bars or ingots. The word bullion reportedly originates from Claude de Bullion (13 October 1569 22 December 1640), who was a French aristocrat and politician who served as a Minister of Finance under Louis XIII from 1632 to 1640. An alternate theory suggests that it comes from the old French word bouillon, which meant "boiling" and was the term for a mint or melting house. In recent years, the term bullion has also been used to describe ingots or bars of base metals such as copper, nickel, or aluminum. Bullion refers to precious metals in bulk form which are regularly traded on commodity markets. The value of bullion is typically determined by the value of its precious metals content, which is defined by its purity and mass. The specifications of bullion are often regulated by market bodies or legislation. In the European Union, the minimum purity for gold bullion, which is treated as investment gold with regards to taxation, is 99.5% for gold bullion bars and 90% for bullion coins.

METALS
A) Gold
Introduction Gold has long been considered one of the most precious metals, and its value has been used as the standard for many currencies as civilisations and empires have risen and declined. Due to its rarity and durability gold has historically been used as a method of payment because of its unique properties. Recent years have seen gold return to grace: against a backdrop of declining equity markets, geopolitical tension, and inflationary fears, the dollar price of gold has soared and with it we have witnessed renewed interest in the yellow metal as an investment. Gold, traditionally seen as a safe haven against uncertainty, has proved very attractive to investors. 7

Gold has been highly valued for thousands of years and is as popular now as it has ever been; as jewellery, as a financial asset and as an industrial product. However, the social value that the gold industry adds to societies around the world, especially in poorer countries, is less understood. Gold mining is vital to the fragile economies of many developing countries, which account for over 70% of global gold production. In addition to generating export revenue in these countries, gold production provides royalty and tax income to their governments, technology transfer, worker training and the creation of a skilled workforce. Gold mining can also bring substantial improvements in physical, social, legal and financial infrastructure. In many of these countries, gold mining is a foundation industry that often provides the critical mass for the development of electricity, water, road and rail transport in a region, factors that are the essential foundations of an economy. This characteristic of the industry is particularly important in Africa where lack of infrastructure has been identified as one of the major hindrances to economic development. The majority of the jewellery purchased in the Middle East and Asia is used as a means of saving in addition to its function as an adornment. The use of jewellery as savings is often important in rural areas where access to a reliable and appropriate banking system is difficult or impossible. Gold also offers protection against a weak currency or high domestic inflation levels, which are prevalent and presistant problems in the developing world. Investment in gold - why? The real value of gold is not that it provides a quick, speculative fix, but that it can provide a sure and steady means of protecting wealth and enhance the consistency of returns. With gold's role as a portfolio diversifier, a hedge against inflation and exposure to the dollar, there are several compelling arguments for investing a portion of one's portfolio in the yellow metal. 1.Portfolio Diverfication Most investment portfolios are invested primarily in traditional financial assets such as stocks and bonds. The reason for holding diverse investments is to protect the portfolio against fluctuations in the value of any single asset class. Portfolios that contain gold are generally more robust and better able to cope with market uncertainties than those that don't. Adding gold to a portfolio introduces an entirely different class of asset. Gold is unusual because it is both a commodity and a monetary asset and is an effective diversifier because its performance tends to move independently of other investments. 8

2. Dollar Hedge: Gold is often cited as being an effective hedge against fluctuations in the US dollar, the world's main trading currency. If the dollar appreciates, the dollar gold price falls and similarly a fall in the dollar relative to the other main currencies produces a rise in the gold price. Like all physical commodities, gold is an asset that bears no credit risk. Holding assets in the yellow metal involves no counterparty and is no one's liability. In addition to that, the physical properties of the metal make it an excellent alternative to money. 3. Durable: Gold is durable. Unlike many of the other commodities examined, other things remaining equal (i.e. assuming no changes in price), there is no depreciation in the value of gold, other than any storage costs that might apply. Gold is fungible. It is, at least in theory, infinitely divisible with virtually no losses (other than any operational costs the process might incur). Furthermore, gold has a high value to volume ratio, which makes it easily transferable, with low transport and storage costs. Moreover, gold is one of the deepest commodity markets with the highest levels of liquidity, second only to oil. 4. Inflation The purchasing power of gold has not bread. Today, an ounce of gold still buys 350 loaves. The value of gold therefore, in terms of real goods and services that it can buy, has remained remarkably stable. In contrast, the purchasing power of many currencies has generally declined. There is a growing body of research to bolster gold's reputation as a protector of wealth against the ravages of inflation. Market cycles come and go, but gold has maintained its long term value. 5. Safe Havon In volatile and uncertain times, we often witness a flight to quality', as investors seek to protect their capital by moving it into assets considered to be safer stores of value. Gold is among only a handful of financial assets that is not matched by a liability. It can provide insurance against extreme movements on the value of traditional asset classes that can happen in unsettled times. 6. Liquidity Gold's liquidity is one of its critical investment attributes. Gold can be traded around the clock in larger size, at narrower spreads and more rapidly than many competing diversifiers or mainstream investments.

B) Silver
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Introduction Silver is a white colored shiny element that is highly ductile and malleable and is used in making jewelry, coins and tableware. It is also used in chemical experiments as it provides a high electrical and thermal conductivity. It is found in the metallic state and also in a large amount of minerals mainly in argentite. That is why it is called argentum in Latin Silver is a metal that is associated with metals like gold, lead, zinc and copper, though its unusual properties makes it very different from them. It is used in making various kinds of jewelry, as it is considered as a precious metal second to gold but its contribution in the various industrial sectors as a raw material makes it unmatchable. No other metal can replace silver as it has an endless number of uses. Silver is produced throughout the world but an interesting fact remains that the primary source of silver is not the silver mines but the other sources of silver. Silver mines produce a small amount of silver that is 25% of the worlds total production and the rest of it is derived as a by-product from gold mines (15%), copper mines (24%), lead and diminished since Biblical times. According to the Old Testament, during the reign of King Nebuchadnezzar, an ounce of gold bought 350 loaves of zinc mines (34%) and other sources. The total production of silver in the world figures to be around 615 million ounces and Mexico is the leading silver producing country. The total demand of silver in the world amounts to be around 29 thousand tons. About 95% of this demand is contributed largely by three industrial sectors namely photography, jewelry and silverware sectors. The idea of silver as a holding asset and as a source of coinage is losing popularity to the idea of silver as an industrial commodity. The demand of silver in 2002 from these sectors was: Photography sector 342 million ounces Jewelry sector 205 million ounces Silverware sector 259 million ounces The countries that are the major consumers of silver are: - United states, Canada, Mexico, United Kingdom, France, Germany, Italy, Japan and India Production of silver in India India hardly produces any silver and is basically a silver importing country. It holds the 20th place in the list of silver producing countries and the total production of silver in India in 2004 was around 2.1 million ounces. The three major silver producing states in India are: - Rajasthan, Gujarat, Jharkhand. Rajasthan is the leading silver producing state in India with a production of around 32 thousand tons. Gujarat follows on the second place with a production of around 20 thousand tons. Indian Silver Market: As mentioned above, India is primarily a silver importing country, as the production of 10

India is not sufficient to satisfy the ever-growing domestic demand. The production of silver in India stands out at the figure of around 2.1 million ounces placing it at the 20th position in the list of major silver producing countries. The import of silver in India hovers over 110 million ounces that shows the huge size of Indian domestic demand. However, this import level fell sharply as a result of the decline in demand due to rise in silver prices and inconsistent monsoon on which the income of the rural sector depends. India stands third after United States and Japan among the leading consumers of silver in the world. Major trading centers of Silver: London Zurich New York (COMEX) Chicago (CBOT) Hong Kong Tokyo Commodity Exchange (TOCOM) In India, silver is traded at the following places 1) Delhi 2) Indore 3) Rajasthan 4) Madhya Pradesh 5) Mathura (Uttar Pradesh) 6) Rajkot (Gujarat). Also, silver is traded in the Indian commodity exchanges like National Commodity & Derivatives Exchange ltd, Multi Commodity Exchange of India ltd. and National Multi Commodity Exchange of India ltd. Following diagram gives a fair idea about working of the Commodity market.

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RELIANCE MONEY IS A GROUP COMPANY OF RELIANCE CAPITAL; ONE OF INDIA'S LEADING AND FASTEST GROWING PRIVATE SECTOR FINANCIAL SERVICES COMPANIES, RANKING AMONG THE TOP 3 PRIVATE SECTOR FINANCIAL SERVICES AND BANKING COMPANIES, IN TERMS OF NET WORTH. RELIANCE CAPITAL IS A PART OF THE RELIANCE ANIL DHIRUBHAI AMBANI GROUP. RELIANCE MONEY IS A COMPREHENSIVE ELECTRONIC TRANSACTION PLATFORM OFFERING A WIDE RANGE OF ASSET CLASSES. ITS ENDEAVOR IS TO CHANGE THE WAY INDIA TRANSACTS IN FINANCIAL MARKETS AND AVAILS FINANCIAL SERVICES. RELIANCE MONEY IS A SINGLE WINDOW, ENABLING YOU TO ACCESS, AMONGST OTHERS IN EQUITIES, EQUITY & COMMODITIES DERIVATIVES, MUTUAL FUNDS, IPOS, LIFE & GENERAL INSURANCE PRODUCTS, OFFSHORE INVESTMENTS, MONEY TRANSFER, MONEY CHANGING AND CREDIT CARDS.

RCL is registered as a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) under the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996. RCL has sponsored the Reliance Mutual Fund within the framework of the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996.RCL primarily focuses on funding projects in the infrastructure sector and supports the growth of its subsidiary companies, Reliance Capital Asset Management Limited, 14

Reliance Capital Trustee Co. Limited, Reliance General Insurance Company Limited and Reliance Life Insurance Company Limited. As of March 31, 2005, the companys investment in infrastructure projects stood at Rs. 1071 Crores. The investment portfolio of RCL is structured in a way that realizes the highest posttax return on its investments.

Shri Amitabhabh Jhunjhunwala, 51, is a Fellow Chartered Accountant. He has vast experience in the areas of financial services and capital markets. Shri Jhunjhunwala was appointed to the Board on March 7, 2003 and was appointed Vice Chairman on March 20, 2006. He is a Director on the Board of Harmony Art Foundation and Reliance Anil Dhirubhai Ambani Group Pvt. Ltd.

Shri Rajendra P. Chitalale, 46, an eminent Chartered Accountant, is the Managing Partner of M/s M. P. Chitale & Associates. He is a Director on boards of the National Securities Clearing Corporation Limited, Asset Reconstruction Company (India) Ltd, Hinduja TMT Limited, HTMT Global Solutions Ltd, Ambuja Cement Limited, SME Rating Agency of India Limited, Ishan Real Estate PLC and Reliance General Insurance Company Ltd. He is also a member of the advisory board of the Insurance and Regulatory Authority of India (IRDA). He has also served on the boards of Life Insurance Corporation of India, Unit Trust of India,

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SBI Capital Markets Ltd., National Stock Exchange of India Ltd. and Small Industries Development Bank of India.

Shri C.P. Jain, 61, is the former Chairman and Managing Director of NTPC Ltd. (National Thermal Power Corporation). Shri Jain has an illustrious career spanning over four decades of contribution in the fields of financial management, general management, strategic management and business leadership. He is a fellow member of the Institute of Chartered Accountants of India with an advanced diploma in Management and is a law graduate. Shri C. P. Jain joined the Board of NTPC in 1993 as Director (Finance), was elevated as Chairman & Managing Director in September 2000 and superannuated in March 2006. He is Chairman of the Global Studies Committee of World Energy Council (WEC), world's largest energy NGO with nearly hundred member-nations. He has been on several important committees of the Government of India, latest being the 'Adhoc Group of Experts on Empowerment of CPSEs'. He was Chairman of Standing Conference of Public Enterprises (SCOPE) between April 2003 and March 2005. He is a Director on the Board of IL & FS Infrastructure Development Corporation and, is also a member of the Audit Advisory Board of the Comptroller and Audit General of India.

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Anil Ambani - Reliance Capital, Success Story 17

Born: June 4, 1959-Mumbai,India Age: 48 Country Of Citizenship: India Residence: Mumbai, India Occupation: Chairman, Anil Dhirubhai Ambani Group Net worth: US$45 billion Fortune: NA Source: Diversified Industry: Diversified Marital Status: married, 2 children Spouse: Tina Munim Education:University of Bombay, Bachelor of Arts / Science University of Pennsylvania Wharton School, Master of Business Administration -----------------------------------------------------------------------------------------------Ambani is chairman of Reliance Capital, Reliance Communications and Chairman & Managing Director, Reliance Energy, and was formerly Vice Chairman and Managing Director of Reliance Industries Limited. His personal stake in Reliance Communications is 66%. Reliance group is India's largest business house, founded by Anil's late father Dhirubhai Ambani (1938-2002). His mother is Kokilaben Ambani. He is married to Tina Ambani(Munim) who was a well known Indian Actress in early 80's, and with whom he has two sons: Jai Anmol and Jai Anshul.

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The total investors' wealth in the four Anil Ambani Group firms -- Reliance Communications (RCOM), Reliance Capital (RCL), Reliance Energy (REL) and Reliance Natural Resources Ltd (RNRL) has reached 1,42,384 crore rupees, while total promoter holding is estimated at about Rs 87,000 crore. Anil's wealth comes mostly from his over 65 per cent stake in RCOM, which has a market cap of about Rs 1,03,000 crore. He also has over 50 per cent in RCL (market cap of Rs 24,000 crore), 35 per cent in REL (market cap of Rs 12,700 crore) and close to 54 per cent in RNRL, which has a market cap of about Rs 2,600 crore.

As of 6th October 2007, his net worth was calculated at $45 billion. Ambani holds a Bachelor of Science degree from the University of Mumbai and an MBA degree from The Wharton School at the University of Pennsylvania. Currently, he serves as a member of the Wharton Board of Overseers.

Ambani joined Reliance in 1983 as Co-Chief Executive Officer and is credited with having pioneered many financial innovations in the Indian capital markets. For example, he led India's first forays into overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. He directed Reliance in its efforts to raise, since 1991, around US$2 billion from overseas financial markets; with a 100-year Yankee bond issue in January 1997 being the high point. After which people regarded him as a Financial Wizard. He has steered the Reliance Group to its current status as India's leading textiles, petroleum, petrochemicals, power, and telecom company.

Anil was the member of Uttar Pradesh Development Council (This council has now been scrapped) He is also the Chairman of Board of Governors of DA-IICT, Gandhinagar and a member of the Board of Governors of the Indian Institute of Technology, Kanpur. He is member of the Board of Governors, Indian Institute of Management, Ahmedabad. He is also a member of the Central Advisory Committee, Central Electricity Regulatory Commission. In June 2004, Anil was elected as an Independent Member of the Rajya Sabha - Upper House, Parliament of India with the support of the Samajwadi Party. In March 2006, he resigned. Recently after his brother Mukesh Ambani he also has his name in the books of Trillionaires. Anil has been linked with several starlets in his long career including his current wife of more than 15 years. Recently, Anil was linked to Miss Universe Sushmita Sen. His biggest prize 19

from the filmdom though is considered to be his friendship with Megastar Amitabh Bachchan . His another achievement is considered to be the takeover of Adlabs, the movie production to distribution to multiplex company that owns Mumbai's only dome theatre.

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: WHARTON BOARD OF OVERSEERS, THE WHARTON SCHOOL, USA CENTRAL ADVISORY COMMITTEE, CENTRAL ELECTRICITY REGULATORY COMMISSION BOARD OF GOVERNORS, INDIAN INSTITUTE OF

MANAGEMENT, AHMEDABAD BOARD OF GOVERNORS INDIAN INSTITUTE OF TECHNOLOGY, KANPUR IN JUNE 2004, HE WAS ELECTED FOR A SIXYEAR TERM AS AN INDEPENDENT MEMBER OF THE RAJYA SABHA, UPPER HOUSE OF INDIAS PARLIAMENT A POSITION HE CHOSE TO RESIGN VOLUNTARILY ON MARCH 25, 2006.

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CONFERRED THE

IN THE PLATTS GLOBAL ENERGY

AWARDS RATED AS ONE OF INDIAS MOST ADMIRED CEOS FOR THE SIXTH CONSECUTIVE YEAR IN THE BUSINESS BARONS TNS MODE OPINION POLL, 2004 CONFERRED THE ENTREPRENEUR OF THE DECADE AWARD BY THE BOMBAY MANAGEMENT ASSOCIATION, OCTOBER 2002 AWARDED THE FIRST WHARTON INDIAN ALUMNI AWARD BY THE WHARTON INDIA ECONOMIC FORUM (WIEF) IN RECOGNITION OF HIS CONTRIBUTION TO THE ESTABLISHMENT OF RELIANCE AS A GLOBAL LEADER IN MANY OF ITS BUSINESS AREAS, DECEMBER 2001 SELECTED BY ASIAWEEK MAGAZINE FOR ITS LIST OF LEADERS OF THE MILLENNIUM IN BUSINESS AND FINANCE AND WAS INTRODUCED AS THE ONLY NEW HERO IN BUSINESS AND FINANCE FROM INDIA, JUNE 1999 The convenience of handling all your key Simplyfy through this Simply open a Reliance Money account and enjoy the convenience of handling all your key financial transactions through this single window.

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SINGLE - WINDOW ACCESS YOU WILL BE ABLE TO TRANSACT IN EQUITY, EQUITY & COMMODITY DERIVATIVES, OFFSHORE INVESTMENTS, MUTUAL FUNDS, IPOS, LIFE INSURANCE, MONEY GENERAL AND INSURANCE, CREDIT MONEY TRANSFER, OTHERS. CHANGING CARDS, AMONGST

COST-EFFECTIVE

AN INTRODUCTORY OFFER, PAY A FLAT FEE OF JUST RS 500/-* AND TRANSACT FOR 1 YEAR OR A SPECIFIED TRANSACTION VALUE, WHICHEVER IS EARLIER .
CONVENIENT & SAFE

YOU CAN ACCESS RELIANCE MONEY'S SERVICES THROUGH THE INTERNET, TRANSACTION KIOSKS, THE NETWORK OF ASSOCIATES YOURE A/C IS SAFEGUARDED WITH A UNIQUE SECURITY NUMBER THAT ACT AS A DYNAMIC PASSWORD AND CHANGE S EVERY 32 SECONDS A SINGLE WINDOW FOR BANKING,TRADING AND DEMAT ACCOUT AND AND TRANSFER FUNDS ACROSS ACCOUNTS SEAMLESSLY. Value-Added services: PHONE (CALL & TRANSACT), OUR ALL - INDIA

CEOs' / Expert views on the economy and financial markets Risk Analyser for analysis of your risk profile Asset Allocators to build an appropriate investment portfolio Conditions Apply

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Reliance Money Demat Account Charges: Fee Head Annual Services Charges - For Individuals / HUFs / Trust DP Charges Rs. 50/-

Annual Services Charges - For NRIs / Foreign Nationals, Corporates / Rs. 1000/Others Transaction Charges - SELL (Market & Off Market) For instructions given in physical form. Transaction Charges - SELL (Market & Off Market) For instructions received through Internet/ online trading through Reliance Securities Ltd. Rs. 25/Rs. 12/-

Cost-effective You pay comparatively lower transaction fees. As an introductory offer, we invite you to pay a flat fee of just Rs.500/-* and transact through Reliance Money. This fee is valid for two months or a specified transaction value. See the table for details. Illustrative table showing fee structure & validity limits.

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Unutilized

Delivery

limit

may

be

added

to

Non-delivery

limit

Conditions Apply.

Through Reliance Money Account applying in IPO is just a click away

Simply apply online for an IPO

follow 3 simple steps Log on www.reliancemoney.com Go to the IPO section Select your IPO and apply online
Register today with Reliance Money

Get SMS alert on upcoming IPOs Detailed company background IPO order history Allotment details Ease of instant selling

Take advantage of investing in Insurance products with No Hassles & minimal Paperwork. Get started here
Life Insurance Reliance Money Account gives you the advantage of buying policies from 12 different Life Insurance companies, helping you get unbiased opinion. General Insurance Reliance Money Account also extends the product offerings from 10 General Insurance Companies with exhaustive range of insurance products that covers most risks including Motor, Health, Property, Marine, Casualty and Liability. Over the Counter Products Your Reliance Money Account makes it so simple for you to buy insurance products that it is as easy as buying something over the counter. Conditions Apply

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RELIANCE MUTUAL FUND, A PART OF THE RELIANCE - ANIL DHIRUBHAI AMBANI GROUP (R- ADAG) IS ONE OF THE FASTEST GROWING MUTUAL FUNDS IN THE COUNTRY.

RELIANCE MUTUAL FUND OFFERS INVESTORS A WELL ROUNDED PORTFOLIO OF PRODUCTS TO MEET VARYING INVESTOR

REQUIREMENTS. RELIANCE MUTUAL FUND (RMF) IS ONE OF INDIAS LEADING MUTUAL FUNDS, WITH ASSETS UNDER MANAGEMENT (AUM) OF RS. 59,857 CRORE (AUM AS ON 30TH JUNE 2007) AND AN INVESTOR BASE OF OVER 3.4 MILLION.

RELIANCE MUTUAL FUND CONSTANTLY ENDEAVOURS TO LAUNCH INNOVATIVE PRODUCTS AND CUSTOMER SERVICE INITIATIVES TO INCREASE VALUE TO INVESTORS.
RELIANCE MUTUAL FUND SCHEMES ARE MANAGED BY RELIANCE CAPITAL ASSET MANAGEMENT LTD., A WHOLLY OWNED SUBSIDIARY OF RELIANCE CAPITAL LTD.

RELIANCE CAPITAL IS ONE OF INDIA'S LEADING AND FASTEST GROWING PRIVATE SECTOR FINANCIAL SERVICES COMPANIES, AND RANKS AMONG THE TOP 3 PRIVATE SECTOR FINANCIAL SERVICES AND BANKING COMPANIES, IN TERMS OF NET WORTH.

RELIANCE CAPITAL HAS INTERESTS

IN ASSET MANAGEMENT AND

MUTUAL FUNDS, LIFE AND GENERAL INSURANCE, PRIVATE EQUITY AND PROPRIETARY INVESTMENTS, STOCK BROKING AND OTHER FINANCIAL SERVICES.

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Reliance Life Insurance is an associate company of Reliance Capital Ltd., which alongwith its associates has acquired 100% shares in AMP Sanmar Life Insurance Co Ltd. Reliance Life Insurance has a pan presence and a range of products catering to individual as well as corporate needs A total of 16 products covering savings, protection & investment requirements Reliance Life Insurance would strive hard to achieve the following goals: Emerge as transnational Life Insurer of global scale and

standard Achieve impeccable reputation and credentials through best

business practices Vision : Empowering everyone live their dreams Mission : Create unmatched value for everyone through

dependable, effective, transparent and profitable life insurance and pension plans

Guiding Principles

- Customer Care and Satisfaction - Corporate Governance - Creativity and Innovation - Competitiveness

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Life Insurance
Life insurance helps Provide financial assurance & security for your dependents & loved ones. It is an important part of the financial planning bouquet for all individuals & families. Life insurance products offer comprehensive financial solutions which besides offering financial security also provide opportunity for saving, investment & tax planning.

About Reliance General Insurance

Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first non-life companies to get the license from the IRDA. RGICL offers an exhaustive range of insurance products that covers most risks including Property, Marine, Casualty and Liability.

It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event. It is a hedge against the occurrence of unforeseen incidents. Insurance products help you in not only mitigating risks but also helps you by providing a financial cushion against adverse financial burdens suffered. Accidents... illness... fire... financial securities are the things you'd
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like to worry about any time. General Insurance provides you the much-needed protection against such unforeseen events. Unlike Life Insurance, General Insurance is not meant to offer returns but is a protection against contingencies. Under certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory.

Vision
To be an insurer of World Standards and the most preferred choice for clientele at the domestic and global level.

Mission
Our Mission is to keep the customer satisfaction as focal point of all our operations, adopt the best international practices in underwriting, claims and customer service, be the most innovative in product development, establish presence all over India, ensure sustained value addition to all stake holders and to uphold Corporate Value & Corporate Governance.

Objectives
Make affordable insurance accessible to all Keep customer as focal point for all operations Protect policy holders interests Adopt best international practices in claims, underwriting and policy servicing Be the most innovative in product development Establish Pan India presence

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Value propositions Risk Evaluation:

Provide expertise in risk evaluation and risk

mitigation leading to the most appropriate risk transfer solution.

Post sales services:

Differentiate

on

service

parameters

by

ensuring prompt and correct documentation& fair, transparent, speedy claims settlement. New products: Introduce innovative products suited to specific market segments

Training:

Extensive

training

to

the

employees availability

involved

in

underwriting

and claims

to ensure

of a varied

experienced and competent team to cater to the customer needs.

Technology:

Use IT as a means to provide for a far superior

customer experience in terms of access, speed and simplicity

Reinsurance

backing: Apart from using capacity of the national

reinsurer, establish relationships with the best reinsurers across the

world.

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OBJECTIVE OF THE PROJECT

As far as the objective of the project is concerned I have divided my whole project into two phases which are as follows-:

PHASES Phase-1

PROJECT Analysis of investment pattern of an individual.

Phase-2

Study the recent trends in the commodity metal market

PHASE-1 To know about the investment pattern of the individual. To know about the satisfaction of individual on financial products. To know about various aspects regarding investments like whether people

Prefer speculative market or they prefer secure market.

PHASE-2 The main objective was to identify major players in the market. Analyzing the recent happenings in the metal market. Analyzing how market behaves from time to time. To analyze the role of SEBI as market regulator

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RESEARCH METHODOLOGY
This section indicates what is to be researched and also shows which method is to be adopted for the research methodology. Problem Statement To study the future of metal as commodity in India Introduction to Research:The following methodology will be used to state and justify the reason for using the different methods selected for the research of the project. In order to achieve the aims and objective of the study, it is very important that researcher should use sound research tools and techniques and know how best to analyze the results. Here, the combination of research methods has been utilized in gaining an insight to a complex and changing area. As in the research, the theory is already available about the metals in the commodity market by taking into consideration their price, future value and scope in income generation. Hence, the researcher has to find out the behavior of consumer in context of purchase decision regarding to the metals rather than in shares and debentures by comparing the prospect market of the available competitors.

Research Design:This section carries out the topics such as research sector, research population and instruments used for the research.

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Research Sector Researcher is going to carry out the research on the prospects of the metals in stock market because the research is aimed at the future scope of metals in commodity markets. Research Population Research population comprises of each and every person come under the terms consumer and customer. They may be working persons, housewives, students and impulsive buyers. Research Instruments Research instruments used to find out the solution of the research problem are: 1. Questionnaire Sampling Techniques Random sampling method is used so each population can get equal and fair chance of being selected. Sample Size Sample size taken for the study is 150.

Source of Data As the project title itself describes the future aimed problem as the research is conducted problem related to future of metals. Here in the survey primary data is collected with the help of questionnaire method to get the main theme of the project.

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Method of Analysis The raw data is not fruitful if it is not analyzed properly. There are various tools available in the statistical field. Some statistical tools used for analyzing the data are as follows: Tabulation method Graphical method

38

39

CLASSIFICATION OF INVESTMENT
AS AN INVESTOR YOU HAD A WIDE ARRAY OF INVESTMENT AVENUES AVAILABLE TO YOU. THESE MAY BE CLASSIFIED AS BELOW: INVESTMENT AVENUES

NON-MARKETABLE FINANCIAL ASSETS BONDS

EQUITY SHARE

MONEY MARKET INSTRUMENT

MUTAL FUNDS SCHEMES

LIFE INSURENCE POLICIES

REAL ASSETS

PRECIOUS OBJECT

METAL MARKET

40

41

RESPONDENTS AWARENESS IN METALS COMMODITY MARKET :AWARENESS YES NO NUMBER OF RESPONDENTS 80 20

RESPONDENT'S AWARENESS OF METALS COMMODITY MARKET

NO 19%

YES 81%

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ANALYSIS OF TABLE From the above table we can analyze that most of the people we surveyed are aware of the securities market Above table shows that out of 150 people surveyed around 81% were aware of the METALS market & remaining 19% were still to know what METALS market is all about . The information shows the peoples growing concern towards their money which is infact the result of growing investments in the METALS market and other investment areas.

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PURPOSE OF INVESTMENT:REASONS FOR INVESTMENT HIGH RETURN 85 TAX EXEMPTION 42 FUTURE OTHERS 02 BENEFITS 78 NUMBER OF RESPONDENTS

PURPOSE OF INVESTMENT

FUTURE BENEFITS 38%

OTHERS 1% HIGH RETURN 41%

TAX EXEMPTION 20%

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ANALYSIS OF TABLE
o Investment in laymans language is just addition of units of profit into the capital. The purpose of investment can be to save for the future or to get exemptions or to get higher returns like in stock market . o If we analyze the above table 41% people have opted for higher returns. 38% people have opted for future benefits & 20% have opted for tax exemptions. o Therefore we can conclude from the above table that the purpose of investment is the mixed bunch of all the things . people want invest to save their tax , they want to invest for the future benefits or gains arising out of the investments . tax

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MARKET THAT GIVES HIGHEST RETURNS:MARKET MUTUAL FUNDS SHARE MARKET REAL ESTATE ANY OTHER NUMBER OF RESPONDENTS 60 40 94 13

MARKET OF HIGH RETURNS

OTHERS

13

REAL ESTATE SHARE MARKET MUTUAL FUNDS 0 20 40 60

94
NUMBER OF RESPONDENTS

40

60 80 100

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ANALYSIS OF TABLE
The stock market or the securities market in India witnessed several changes since the year 2005 and 2008 which further refined the market scenario & broadened investment choices for the investors . But in comparison to securities market , the real estate market had already seen a booming period & is still one of the most preferred area of investment for the people in general . Apart from these two there are some more options available for the investments like mutual funds , insurance etc . From the above table we can conclude that out of 150 people around 45% want to invest in real estate market, 28% want to invest in mutual funds & around 20% in securities market & the rest in others . The reason for the less no. of investments in securities market is the amount of risk involved in this market .

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RESPONDENTS PREFERRED AREA OF INVESTMENT:-

AREA OF INVESTMENT POST OFFICE FIXED DEPOSITS MUTUAL FUNDS INSURANCE EQUITY BONDS

NUMBER OF RESPONDENTS 24 11 54 44 60 14

AREA OF INVESTMENT

BONDS 7% EQUITY 29%

POST OFFICE 12% FIXED DEPOSIT 5% MUTUAL FUNDS 26%

INSURANCE 21%

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ANALYSIS OF TABLE
Well it is true to say that the market scenario has been changed, people are now more interested towards speculative market as it gives more returns but at the same time with more risk involved . If we talk about the FIIs investment in India , its being increased & with positive signs in the market Last year there was an all time high investment made by the FIIs in equities & mutual funds . Also if we analyze the above table we will find that out of 150 respondents 29% are interested in equity ,26% in mutual funds ,12 in post office, 21 in insurance & 5% & 7% in fixed deposits & bonds respectively which clearly states that people in general normally want to invest in securities , mutual funds & insurance . with these above being the gray areas , we can conclude that gone are the days when people used to invest in Fixed deposits ,Post office & others .

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RESPONDENTS PROFESSION:PROFESSION SELF EMPLOYED 49 SALARIED GOVERNMENT 30 SALARIED PRIVATE 128 NUMBER OF RESPONDENTS

RESPONDENT'S PROFESSION

90 80 70 60 50 40 30 20 10 0

85

32 20

NUMBER OF RESPONDENTS

S D Y O P M F L E

T M N R E V O G

D E I R L A S

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S D E I R L A E T A V I R P

ANALYSIS OF TABLE

If we talk right from back there was always less percentage of self employed people as compared to people who were working . Earlier people used to go for government jobs but now the percentage has dramatically changed. Now people are focusing towards employment in private sectors which in turns gives fruitful opportunities in order to reach heights in their profession. Due to this good working atmosphere, the lifestyle of people has changed. People are earning more, spending more & therefore scope for investments have also increased, as big private companies and MNCs are paying far above the government agencies. If we look towards the above table 62% respondents are working in the private sector ,14% in government sector & 24% people They are self employed.

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INCOME GROUP OF RESPONDENTS :INCOME GROUP 1 5 LACS 6 8 LACS 9 12 LACS 12 LACS & ABOVE NUMBER OF RESPONDENTS 82 44 14 10

INCOME GROUP OF RESPONDENTS

60 50 40 30 20 10 0 1 - 5 LACS 6 - 8 LACS 9 - 12 LACS 12 LACS & ABOVE 9 7 30
NUMBER OF RESPONDENTS

54

52

ANALYSIS OF TABLE
With India being the most preferred destination for companies & recruiters, the pay package in India has seen a great rise in the recent past. The MNCs pay a very good amount of salary to their employees & the standard of living has also increased with the increase in economy as whole, Thats why people are more focused towards the investments . If we look at the above table 80% of the people earn between 1-5lacs per annum, 44% of them earn between 6-8lacs , 14% between 9-12lacs & there are 10% people who even earn more 12lacs per annum.
People above 12lacs of earning are mostly self employed people who have

their own business & they focus more on future benefits & return on investments rather than tax savings & other purposes. Their attitude towards investment is different as compared to salaried people. In a way they are more aggressive than the salaried class.

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PERCENTAGE OF SALARY INVESTED:% OF EARNINGS

10% OF EARNINGS 20% OF EARNINGS 25% OF EARNINGS 30% OF EARNINGS

NUMBER OF RESPONDENTS
30 40 97 4O

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ANALYSIS OF TABLE
When we think of making investment in any field, first thing that strikes in our mind is what part of our earnings we are ready to invest in the decided sector. We invest according to the current position of the sector. Above table clearly shows that 19% people invest 30% of their earnings , 14% people invest 10% of their earnings , 19% invest 20% of their earning and 48% people invest 25% of their earnings which is the maximum percentage. All these figures depend upon the interest level of the investor.

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RISK AND RETURN

TYPE OF INVESTMENTS HIGH RISK HIGH RETURN LOW RISK HIGH RETURN NUMBER OF RESPODENTS 27 123

TYPE OF INVESTMENT

140 120 100 80 60 40 20 0 HIGH RISK HIGH RETURN LOW RISK HIGH RETURN 27 123
NUMBER OF RESPONDENTS

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ANALYSIS OF TABLE
The stock market or securities market involves lot of risk . when people invest as investor in this market they carry a lot of risk of their money to be lost . That is why this market is also called speculative market. Therefore an investor should be aware of this market and should have proper knowledge so that the decision to invest in the market yields him good results. There is a popular saying that HIGHER THE RISK, HIGHER THE RETURN . In the above table 20.28% people have opted for High risk high return category & 79.71% have opted for low risk low return category which shows that majority of the people dont want to take risks with their money involved. They want to be on the safer side and would choose the option which will minimize their risks and maximize their returns.

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HOW RESPONDENTS TAKE DECISIONS TO INVEST?

DECISION TO INVEST SELF DECISION FAMILY MEMBERS FRIENDS FINANCIAL PLANNER TOTAL NUMBER OF RESPONDENTS 66 46 10 28 150

RESPONDENT'S INVESTMENT DECISION

66 46 28 10
NUMBER OF RESPONDENTS

70 60 50 40 30 20 10 0

F L E S

Y L I M A F

N O S I C E D

S R B E M

S D N E I R F

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L C A N I F

R E N A L P

ANALYSIS OF TABLE
To make the investment one should be aware of the market, various instruments in the market and should have proper knowledge, so that the decision to invest in the market will give him good returns as well as security. The decision made by the respondents should be sound backed by good knowledge and awareness of the current market scenario. If we look towards the table 65% of the people take self decisions, 22% of the people take investment decisions after consulting their families. These type of respondents are mainly from joint families who make their decisions considering all the members of the family.4% of the people consult their friends and there are only 8% people who are dependent on financial planners or wealth managers to manage their portfolio, as the new entry of wealth manager companies leaves the choice to respondents to make the best use of it but hardly anyone knows about these wealth management companies that is why the %age is less.

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DURATION OF INVESTMENT:DURATION 2 YEAR 5YEAR 6YEAR 8YEAR NO.OF RESPONDENT 40 70 30 10

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ANALYSIS OF TABLE
The investment duration made by the respondents should be sound backed by good knowledge and awareness of the current market scenario. These type of respondents are mainly from 2year in 26%, 5 year in46%,6year in 20% and last one 8year in 8%.then the no. of investor in chosen by 5year plan.

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Which metal commodity is most preferable by you:COMMODITY GOLD SILVER DIMOND OTHER NO.OF RESPONDENT 80 40 10 20

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ANALYSIS OF TABLE
When we think of making commodity in any field, first thing that strikes in our mind is what part of our earnings we are ready to invest in the decided sector. We invest according to the current position of the sector. Above table clearly shows that 53% people commodity 26% of their commodity, 8% people invest 13% of their commodity,53% commodity in gold ,26% of their commodity in silver which is the maximum percentage. All these figures depend upon the investment level of the investor.

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IS THE METAL MARKET HAVE ANY OPPORTUNE IN FUTURE:OPPORTUNE GROWTH DECLINE NO IDEA NO. OF RESPONDENT 110 30 10

ANALYSIS OF TABLE
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 When we think of making commodity metal market , first thing that strikes in our mind is what part of our profitable . We invest according to the current position of the sector. Above table clearly shows that 70% groth stage commodity 20% decline stage commodity,10% no idea

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Which metal is profitable in future:COMMODITY GOLD SILVER DIMOND OTHER NO.OF RESPONDENT 75 45 10 20

Analysis of table

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 When we think of making commodity in any field, first thing that strikes in our mind is what part of our profitable we are ready to invest in the decided sector. We invest according to the current position of the sector. Above table clearly shows that 50% people commodity 30% of their commodity, 7% people in commodity13% of their commodity,50% commodity in gold ,13% of their commodity in gold which is the maximum percentage.

Frequency:67

FREQUENCY DAILY OCCASAN

NO.OF RESPONDENT 30 120

Analysis of table

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 From the above table we can analyze that most of the people we surveyed are occasanely purchase of the metals They some of the people metals purchase in daily

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70

THE RECENT TRENDS IN THE STOCK MARKET THE BACKGROUND

Stock Market Stock Market is a market where the trading of company stock, both listed securities and unlisted takes place. It is different from stock exchange because it includes all the national stock exchanges of the country. For example, we use the term, "the stock market was up today" or "the stock market bubble." Bombay Stock Exchange (BSE) National Stock Exchange (NSE) Regional Stock Exchanges o Ahmedabad Stock Exchange o Bangalore Stock Exchange o Bhubaneshwar Stock Exchange o Calcutta Stock Exchange o Cochin Stock Exchange o Coimbatore Stock Exchange o Delhi Stock Exchange o Guwahati Stock Exchange o Hyderabad Stock Exchange o Jaipur Stock Exchange o Ludhiana Stock Exchange o Madhya Pradesh Stock Exchange o Madras Stock Exchange o Magadh Stock Exchange o Mangalore Stock Exchange o Meerut Stock Exchange o OTC Exchange Of India o Pune Stock Exchange o Saurashtra Kutch Stock Exchange o Uttar Pradesh Stock Exchange o Vadodara Stock Exchange

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History of Indian Stock Market

Indian stock market marks to be one of the oldest stock market in Asia. It dates back to the close of 18th century when the East India Company used to transact loan securities. In the 1830s, trading on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading was broad but the brokers were hardly half dozen during 1840 and 1850.In 1860, the exchange flourished with 60 brokers. In fact the 'Share Mania' in India began when the American Civil War broke and the cotton supply from the US to Europe stopped. Further the brokers increased to 250. At the end of the war in 1874, the market found a place in a street (now called Dalal Street). In 1887, "Native Share and Stock Brokers' Association" was established. In 1895, the exchange acquired a premise in the street which was inaugurated in 1899.

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Stock Trading
Screen Based Trading
The trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity and transparency, NSE introduced a nationwide, on-line, fully automated screen based trading system (SBTS) where a member can punch into the computer the quantities of a security and the price at which he would like to transact, and the transaction is executed as soon as a matching sale or buy order from a counter party is found. NEAT NSE is the first exchange in the world to use satellite communication technology for trading. Its trading system, called National Exchange for Automated Trading (NEAT), is a state of-the-art client server based application. At the server end all trading information is stored in an in memory database to achieve minimum response time and maximum system availability for users. It has uptime record of 99.7%. For all trades entered into NEAT system, there is uniform response time of less than one second.

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Placing orders with the broker

You may go to the brokers office or place an order on the phone/internet or as defined in the Model Agreement, which every client needs to enter into with his or her broker.

Products in the Secondary Markets

Following are the main financial products/instruments dealt in the Secondary market which may be divided broadly into Shares and Bonds:

Shares
Equity Shares: An equity share, commonly referred to as ordinary share, represents the form of fractional ownership in a business venture. Rights Issue/ Rights Shares: The issue of new securities to existing shareholders at a ratio to those already held, at a price. For e.g. a 2:3 rights issue at Rs. 125, would entitle a shareholder to receive 2 shares for every 3 shares held at a price of Rs. 125 per share. Bonus Shares: Shares issued by the companies to their shareholders free of cost based on the number of shares the shareholder owns. Preference shares Owners of these kind of shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity share. They also enjoy priority over the equity shareholders in payment of surplus. But in the 74

event of liquidation, their claims rank below the claims of the companys creditors, bondholders/debenture holders. Cumulative Preference Shares A type of preference shares on which dividend accumulates if remained unpaid. All arrears of preference dividend have to be paid out before paying dividend on equity shares. Cumulative Convertible Preference Shares A type of preference shares where the dividend payable on the same accumulates, if not paid. After a specified date, these shares will be converted into equity capital of the company. Bond Bond is a negotiable certificate evidencing indebtedness. It is normally unsecured. A debt security is generally issued by a company, municipality or government agency. A bond investor lends money to the issuer and in exchange, the issuer promises to repay the loan amount on a specified maturity date. The issuer usually pays the bond holder periodic interest payments over the life of the loan. The various types of Bonds are as follows: Zero Coupon Bond Bond issued at a discount and repaid at a face value. No periodic interest is paid. The difference between the issue price and redemption price represents the return to the holder. The buyer of these bonds receives only one payment, at the maturity of the bond.

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Convertible Bond A bond giving the investor the option to convert the bond into equity at a fixed conversion price.

Treasury Bills: Short-term (up to one year) bearer discount security issued by government as a means of financing their cash requirements. Equity Investment When you buy a share of a company you become a shareholder in that company. Shares are also known as Equities. Equities have the potential to increase in value over time. It also provides your portfolio with the growth necessary to reach your long term investment goals. Research studies have proved that the equities have outperformed most other forms of investments in the long term. Growth Stocks In the investment world we come across terms such as Growth stocks, Value stocks etc. Companies whose potential for growth in sales and earnings are excellent, are growing faster than other companies in the market or other stocks in the same industry are called the Growth Stocks. These companies usually pay little or no dividends and instead prefer to reinvest their profits in their business for further expansions. Portfolio A Portfolio is a combination of different investment assets mixed and matched for the purpose of achieving an investor's goal(s). Items

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that are considered a part of your portfolio can include any asset you own-from shares, debentures, bonds, mutual fund units to items such as gold, art and even real estate etc. However, for most investors a portfolio has come to signify an investment in financial instruments like shares, debentures, fixed deposits, mutual fund units.

DERIVATIVES Forwards A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at todays pre-agreed price. Futures A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Futures contracts are special types of forward contracts in the sense that the former are standardized exchange-traded contracts, such as futures of the Nifty index.

Options An Option is a contract which gives the right, but not an obligation, to buy or sell the underlying at a stated date and at a stated price. While a buyer of an option pays the premium and buys the right to exercise his option, the writer of an option is the one who receives the option premium and therefore obliged to sell/buy the asset if the

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buyer exercises it on him. Options are of two types - Calls and Puts options: Calls Gives the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts Gives the buyer the right, but not the obligation to sell a given quantity of underlying asset at a given price on or before a given future date. Presently, at NSE futures and options are traded on the Nifty, CNX IT, BANK Nifty and 116 single stocks

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THE IPO SCAM

The Securities and Exchange Board of India (SEBI), the capital market Watchdog, cracked down on some of the top brokerage firms and banks for their alleged involvement in an initial public offering (IPO) scam. SEBI conducted investigations in respect of all the IPOs from January 2003 to December 2005. The findings of investigations, prima facie, revealed violations of serious nature by several key operators, their financiers, concerned depository participants and the depositories. In its order, SEBI has barred brokerage firms like Karvy Stock broking IndiaBulls RELIANCE MONEY etc. from the market. It has also directed HDFC Bank and IDBI Bank not to open new demat accounts for share transactions. SEBI's Order fallout: 24 entities banned from primary and secondary market, including Indiabulls, Karvy Securities Reliance Money etc. Quasi-judicial proceedings against Karvy DP and Pratik DP, banned from the market 12 DPs cant open fresh D-mat accounts, including HDFC Bank, IDBI Bank, Central Bank, ING Vysya Bank, IL&FS and Motilal Oswal; 15 more under scrutiny, including ICICI Bank, Citibank,Stanchart 85 Financiers barred from the market. SEBI said certain entities had cornered shares reserved for retail applicants in the name of fictitious entities in the initial public offerings of Yes Bank and Infrastructure Development Finance Company (IDFC).Each of the fictitious application was of small value so as to be eligible for allotment under the retail category, it added. After the allotment, these fictitious beneficiaries transferred these shares to their principals who in turn transferred the shares to their financiers. The financiers in turn sold most of these shares on the first day of listing, thereby realizing the windfall gain of the price difference between IPO price and the listing price.

EFFECTS OF THE RECENT BOOM If we see the overall performance of stock market ,Sensex, from initial (july25,1990) to Feb,2000 ,fluctuate between 1000 to 6000 And July,2005 to July, 2007 moves between 7000 to 15500. The progress of sensex is given in following table

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So we can say stock maret in India is actually in booming period. This is because equity MFs pace with market ,raising more FDI and FII, LOWERING inflation ,strongness in value of Rupee, increase in GDP and PER KAPITA income.

SOME OF THE EXPERT COMMENTS

Investors shouldnt focus on value . Instead they should stick to their asset location plan . If you are underweight on stocks , you should go ahead with your investment plan . If you are overexposed to equity, sell off partly. Sanjiv Shah /EXECUTIVE DIRECTOR, BENCHMARK MF
The rally is mainly because of strong foreign inflows in the last two years. If it continue ,there would be re-rating of India . Then we may see more money coming into the country. As for investor , they should stick to their asset allocation plan and shouldnt get swayed by market movements. Sanjay sinha / CHIEF INVESTMENT OFFICER, SBI MF These are exceptional returns, but this is also an exceptional time. You should extrapolate these returns to the future. These kind of return cannt be sustainedover a long period. MADHU SUDAN KELA RELIENCEHEAD MF

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A REGULATOR

Q-1 who regulates the securities market? Ans-: The responsibility for regulating the securities market is shared by the department Of economic affairs (DEA), Department of company affairs (DCA), Reserve bank of India (RBI), and Securities and exchange board of India (SEBI)

Q-2) Why does securities market need a regulator? Ans-:The absence of conditions of perfect competition in the securities market makes the role of a regulator extremely important. The regulator ensures that market participants behave in a desired manner so that securities market continues to be a major source of finance for corporate and the government and the interest of the investors are protected. Moreover it also ensures that all the work being done in the securities market is being done with trueness and honesty and there should be no malpractices in this market so that interest of the investors remain positive towards this market.

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ROLE OF SEBI AS A MARKET REGULATOR

The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of Securities and Exchange Board of India (SEBI) with statutory powers for-: (a) (b) (c) (d) Protecting the interests of investors in securities Promoting the development of the securities market and Regulating the securities market. Its regulatory jurisdiction extends Corporates in the issuance of capital and transfer of securities, in

addition to all intermediaries and persons associated with securities market. SEBI has been obligated to perform the aforesaid functions by such measures as it thinks fit. In particular, it has powers for: Regulating the business in stock exchanges and any other securities markets Registering and regulating the working of stock brokers, subbrokers etc. Promoting and regulating self-regulatory organizations Prohibiting fraudulent and unfair trade practices Calling for information from, undertaking inspection,

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conducting inquiries and audits of the stock exchanges, intermediaries, selfregulatory organizations, mutual funds and other persons associated with the securities market.

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84

CONCLUSION
In span of 60 days, I have learned how market behaves in bullish & bearish situations. It was a perfect storm. The INDIAN market had been teetering on the knifeedge for apart from above, during my two months stay at RELIANCE MONEY I learned various aspects relating to stock market. I got an opportunity to use my theoretical knowledge which I gained during my MBA course into practical way of doing things. I learned how online trading is done , how do we buy and sell stocks and shares and not to forget the core selling of D-MAT A/cs. This training was very important looking at the future prospects and I feel I have done my job with sincerity and honesty . In the future also I am willing to take such kind of projects as these kind of projects help you enhance your knowledge and of course they make you do things in a practical way.

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86

LIMITATION OF THE STUDY

The word limitation is itself narrating the whole story. To certain extent I was restricted not to extend the reach of my study beyond the certified limit which were imposed by the organization as well as the circumstances. Some are as follows:

was

The area of research was limited to certain area. Sample size was limited to 150 only due to which the analysis of data

not adequate to reveal its significance. Library management & functioning were not available. Not able to implement enough methods of data collection. Since fixed alternative questions were used it may be possible that

Respondents had an opinion but non of the response category allowed the accurate expression of that attitude. to proper identity Due to many vague technical terms it became difficult for customer to understand. Identification of the personals to the customer was quite difficult due

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RECCOMENDATION
functioning. Proper coordination is important form top to operative level for smooth Recruitment of experienced & knowledgeable personal for the

companys systematic & profitable working. heavily in the market. Motivating the old & new customer form special offers to invest

Training & development programs should be introduced from time to

time in accordance to the changing trends in the market & to polish their skills. Library assistance should be provided to the companies Customer relationship management program of the company should be

highlighted from time to time & it should be flexible. customers. RELIANCE MONEY should look towards the proper coordination between all the branches. During the period of opening of D-mat account the customer should be provided with information broacher related to it. Verification of each & every document should be done before the punching of the form. Broker should be quick & cautious while taking the orders from

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BIBLIOGRAPHY
BOOKS Pandey I.M.; Financial management; vikas publishing house pvt. Ltd. Khan M.Y.; Jain P.K.; Management Accounting; Tata McGraw Hill publishing company limited. Kothari C.R.; Research Methodology; new age international publishers (p) ltd. WEBSITES-: www.google.com www.reliancemoney.com www.sharemarketbasics.com www.indian-stock-market.com www.nseindia.com

Useful links about Reliance Money

1. Reliance Money Website: RelianceMoney.com 2. Branch Locator: Reliance Money Branch Locator

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RESPONDANTS PERSONAL INFORMATION Name ::____________________________ Address ::____________________________ Contact :: ____________________________ E-Mail :: ___________________________ Age ::____________________________ Profession :: ____________________________ Q-1) Do you have any investment? Yes ---------No -------------

Q-2)What is the purpose of your investment? High return------ Tax Exemption ----- Future benefits -----Specify Others(if any) -------------------------Q-3)Which kind of investment you haveInsurance-------- Real estate------ Share market-----------Debenture--------- Commodity--------------Other -------Q-4) Are you aware as in metals in commodity market :Yes ---------No -------------

Q-5) Is the metal market have any opportune in future:Growth ------ Decline-----Q-6)What is the total income of your family? 1-5lcas----6-8lacs------9-12lacs------12lacs & above---------

Q-7) If you have a chance, Which metal do you choose:Gold-----Dimond----Silver----------Other-----------

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Q-8) Duration of Investment :2year---- 5year ------ 6year ------ 8year ---------Q-9) Which Type of investments suits you? High risk high return-------------- Low risk high return-----------------Q-10)Which metal commodity is most preferable byyou :Gold-----Silver----------Dimond----Other----------Q-11)Which metal is profitable in future :Gold-----Dimond----Silver----------Other----------

Q-12)Volume of Business? 1-5lak--------6-12lak---------Q-13) Frequency:Daily--------Occasan-----------5- 6lak----------12lak above -----------

Q-14) Do you have any D-Mat A/c: Yes --------No-------------------

Q-15) Last one year Gain profit/loss :Rs Q-16)What is lesson you learn:-

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